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If you know Robert Kiyosaki, it’s no surprise that he had something to say about crypto skeptics during this latest BTC crash.
After Bitcoin took a swan dive to almost $40,000, Rich Dad, Poor Dad the author quickly took to X to tweet his thoughts, reigniting a seemingly one-sided debate with legendary Berkshire Hathaway CEO Warren Buffett (1).
Buffett is known for calling crypto “rat poison” (2) and has argued that he does not believe anyone should invest in something that produces nothing.
Crypto started losing strength in October, with a major decline occurring in November. The Street reported that “nearly 122,000 crypto traders were liquidated and more than $310 million was wiped out” in a 24-hour period (3). Some suggest that the real cost is much higher, almost $400 billion (4).
But given the coin’s history of collapses, many crypto fanatics have not been put off by these market upheavals, and Kiyosaki is one of the most vocal supporters of the cause.
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At the 2022 Berkshire Hathaway annual meeting, Buffett was asked about his disdain for Bitcoin, and he made his opinion clear (5).
“Now, if you told me you had all the bitcoin in the world and you offered it to me for $25, I wouldn’t take it, because what would I do with it? I’d have to sell it back to you one way or another – that wouldn’t do any good.”
The Oracle of Omaha explained that he did not see the value of “something that depends on the next guy paying you more than the last guy got,” and contrasted it with productive assets that produce tangible value, such as apartment buildings and farms.
“Apartments will produce rent and farms will produce food… if I’m trying to get rid of those [bitcoin]You know, people say ‘why should I buy some bitcoin from you?’ So why don’t you call it Buffettcoin and make it your own money?’”
Meanwhile, Kiyosaki continued his tweet: “Doesn’t the World Bank know that stocks, real estate are crashing and US government bonds, the “safest” investments in the world, are now being “thrown away” by the Japanese and Chinese Central Banks?
Although he doesn’t trust the Federal Reserve Bank, the U.S. Treasury Department or Wall Street, “it seems like Buffet does.”
Although Buffett likened Bitcoin to the idea of an intangible “Buffettcoin,” Kiyosaki said he invested in crypto specifically because Buffett and the government failed to do so:
“I invest in Bitcoin and Ethereum because I know they can go up and down because the Fed, the US Treasury, or the Buffet cannot produce Bitcoin or crypto.”
Kiyosaki went on to explain his investment belief system in his post, calling crypto “the people’s money,” real gold and silver “god’s money,” and stocks, bonds, and ETFs “fake” or “fake money.”
So who does Kiyosaki blame for so many investors flocking to these “fake” assets? In other words, our “Marxist school systems”. He argues that schools are failing to provide financial education, which is what inspired the Rich Dad Company 25 years ago.
If you agree with Kiyosaki and want to get into the “people’s money”, now that cryptocurrencies are crashing, it might be a good time to get into the Bitcoin market as you can buy during the dip.
For those who want to benefit from this low price, platforms such as Robinhood Crypto allows users to purchase some of the most popular coins on the market. You can trade with as little as $1 and you won’t be charged significant trading fees or commissions.
If you’re unhappy with the risks offered by cryptocurrency, Kiyosaki’s other favorite, gold, may provide a safer alternative asset to invest in. While the gold price reached an all-time high this year, peaking at $4,326 in October (6), it has since fallen to $4,077 due to broader market uncertainty (7).
One way to invest in gold, which can also provide significant tax advantages, is to open a gold IRA. Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account; This combines the tax advantages of an IRA with the protective benefits of investing in gold; This makes it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty. Thor Metals is also 100% American owned and operated.
Buffett’s statements regarding crypto have never been positive, and his belief in tangible assets provides a simple investment strategy that even novice investors can easily follow.
Always an advocate of low-cost, “set it and forget it” long-term index fund investing, the key to his strategy is to get started as soon as possible.
If you prefer Buffett’s tried-and-true strategy but aren’t sure how to get started, you can use a simple trading platform like this: acorn can help.
Acorns invest your extra money with every purchase you make, making it easy to invest early even for beginner investors.
Here’s how it works: If you buy lunch for $15.30, Acorns will round up the price to $16.00 and invest the 70 cent difference in a smart ETF portfolio of the kind Buffett recommends. Watch that money snowball into a huge investment throughout the year, with no work done on your part.
And if you’re ready to boost your investment account, Acorns can even accept monthly contributions to your portfolio. New users too Get $20 bonus investment when you set up a recurring monthly deposit.
If you’re not sure which path is right for you, the best thing to do is work with an advisor you trust to develop a plan that suits your risk tolerance and investment timeline.
If you’re not sure where to find a qualified advisor, advisor.com. Just answer a few quick questions and provide your zip code to be matched with potential advisors who best suit your needs.
